Cloze Test 27

Directions: (1-10): In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word form the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningfully complete.


The framework released by the RBI for entry and expansion of foreign banks in India makes sense. If foreign banks do enter India, it would drive local banks to become (1) efficient and encourage mergers and acquisitions. These banks will also bring (2) technology and expertise to foster financial inclusion. The RBI’s final rules provide a foreign banks nearly the (3) freedom as a private sector bank in opening branches if it takes the form of a local subsidiary. New or existing (4) will have to set up wholly-owned arms if they are systemically important foreign banks, or banks that have a complex (5) or those that do not have adequate disclosure requirement in their home jurisdictions or offer home residents preferential protection in case of a problem.However, those present in India before August 2010 Citi, HSBC and Standard Chartered have the (6) to continue as branches. Rightly, the regulator must encourage their conversion into local subsidiaries, following Indian laws. It will ring-fence the capital and assets of the bank within India and (7) effective risk control. Incentives by way of operational freedom could persuade some banks to (8) into wholly-owned subsidiaries. India is a growing market and more branches would do no harm. However, technology has made physical branch networks much less (9) today. An example is the credit card (10) of foreign banks that has far surpassed their branch-network size.
1. (a) less               (b) added           (c) further            (d) more              (e) also

2. (a) down             (b) in                  (c) up                   (d) around           (e) forward

3. (a) equivalent      (b) likely            (c) duplicate         (d) different         (e) same

4. (a) contestants    (b) aspirant        (c) entrants          (d) candidates    (e) petitioners

5. (a) structure        (b) construction  (c) architecture    (d) texture           (e) configuration

6. (a) discretion       (b) free will         (c) prerogative     (d) option            (e) claim

7. (a) endow            (b) enable          (c) qualify             (d) approve         (e) let

8. (a) manipulate     (b) mutate          (c) transfer           (d) turn                (e) convert

9. (a) relevant          (b) compatible    (c) suited             (d) admissible      (e) proper

10. (a) field              (b) work              (c) business         (d) function          (e) occupation




1.d       2.b       3.e       4.c       5.a       6.d       7.b       8.e       9.a       10.c

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